WTI $52.64 +46c, Brent $59.30 +86c, Diff -$6.66 +40c, NG $2.89 -3c
With very quiet trading today crude oil is virtually unchanged after another positive week. Yesterday, Brent closed within spitting distance of the much spooked $60 level, although it was a 27-month high for the market.
A combination of factors is keeping oil high, some more tangible than others. The EIA inventory data showed a massive 12 million barrel fall in total commercial oil stocks and, with products drawing more than expected, they were enough to stabilise the market.
The Saudi Crown Prince, MbS to his mates, has reiterated the Kingdom’s commitment to stabilising the oil market and, with the backing of Vlad post the recent Royal visit to Moscow, relationships appear pretty pukka. Finally, it seems that the Iraqi crisis is powering down somewhat and exports are picking up albeit slowly.
Just back from Cape Town and I will be writing up one or two other meetings in the next few days. However, I thought that the mood for all sorts of projects was much more upbeat than I expected.
SDX Energy (SDX) has announced that it has spudded the KSR-15 development well in the Sebou area of Morocco. This well, the second in the nine well drilling programme, should be complete in 21-30 days and, if successful, will be connected to the local infrastructure within 30 days of the rig leaving site. The KSR-14 well is expected to be on test production within 10 days.
Tullow (TLW) has announced that the Araku-1 well offshore Suriname found “no significant reservoir quality rocks were encountered”, but that there was evidence of gas condensate. All the usual guff about being very important data etc but, whilst disappointing, this was truly a wildcat in the strictest sense of the word.
It is a big weekend coming up, but I first wanted to big up the England U-17 football team who beat Brazil in the semi-finals of their World Cup and now play Spain in the final tomorrow. Good luck fellas.
In the Haribo Cup, the Gooners beat the Toffees and in a thriller at Wembley the Hammers came from being 2-0 down at half-time to win 2-3.
The prize for that in the farcical draw yesterday was another visit to North London to play the Gooners.
The rest of the draw has Bristol City getting the plum home tie against the Red Devils, the Foxes hosting the Noisy Neighbours and Chelski hosting the Cherries.
Interestingly, as so often happens, that tie also happens this weekend when Chelski visit the Cherries. The standout tie is of course the visit of Harry Kane-less Spurs to the Theatre of Dreams, after losing to the Terriers last week some backsides I presume were smacked.
This weekend, those very Terriers travel to fortress Anfield hoping for another scalp. Elsewhere, those Noisy Neighbours go to the Baggies who are building up one hell of a reputation for being boring whilst the Hammers travel to reinvigorated Eagles who picked up their first points last time out.
And it’s another Riviera derby as the Seagulls entertain the Saints, whilst the Foxes host the Toffees and the Gooners entertain the Gooners.
Anthony Joshua takes on Carlos Takam in Cardiff who wasn’t his original opponent but a late replacement.
Lewis can finish 5th in the Mexican GP and that will be enough for him to clinch the title, but I am sure he wants to do it in style…
And it’s a great thing to say that proper jump racing is back with Cheltenham today and tomorrow.
And in the World Series, after an amazing second game which was won by the Astros on away turf, they go back to Houston now…
Malcolm Graham-Wood is an independent oil industry expert and freelance contributor, not a direct employee of Interactive Investor.
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.